Uncategorized

NAIHBR is proud to be working with some of the best service partners in real estate, lending, and construction to provide a more transparent and seamless experience for consumers. That is why so many of our members have decided to “Start With Your NAIHBR,” and introduce their clients to us. Clients can now understand the benefits of new construction, interact with the area’s best builders and receive guidance to make the home building process as easy and efficient as possible.

NAIHBR would like to welcome Proposed Properties as a Platinum Partner. Proposed Properties provides a sophisticated software platform that provides the matching services buyers need, allowing them to compare lots, builders, products and pricing. Agents can now register clients with Proposed Properties and the program will smoothly guide them through the home building process. You can even take a class and become certified as a New Construction Specialist (NCS) so you can take advantage of expanding construction opportunity in your market. Did you know over half of ALL buyers consider new construction before they buy? Save time and money by having your new construction homebuyer experience start with Proposed Properties.

NAIHBR continues to grow. We are proud to announce the expansion of the NAIHBR organization to the North Virginia and Washington DC area with our east coast chapter located at 1300 I Street NW Suite 400E, Washington DC, 20005. NAIHBR has partnered with key sponsors like EverBank and National Mortgage Insurance (MNI) to organize a Leadership Summit that will be held at the North Virginia Association of Realtors headquarters in Fairfax Virginia on July 26th, 2018.

Key topics for the event include…

Local Market Overview by Industry Experts

Financing options for new construction and renovation, that Pay Commissions Upfront

High-tech solutions to connect Realtors to today’s buyers and sellers

Launching of the 3/2 Program that triples commissions and doubles marketing opportunities by bringing the real estate and construction communities together to sell more new homes and help builders secure construction projects.

Introduction of the Homebuyer Benefit Program, which gives NAIHBR Preferred Members up to $550.00 of valuable home improvement credits and services to provide to as many of their buyers and sellers as they wish – unlimited use!

This event is sure to be a full house, so interested attendees can reference this EventBrite link to register and reserve their seats:

As NAIHBR continues to grow, we are proud to announce the expansion of the NAIHBR organization to the North Virginia and Washington DC area! NAIHBR has partnered with key sponsors like EverBank and National Mortgage Insurance (MNI) to organize a Leadership Summit that will be held at the North Virginia Association of Realtors headquarters in Fairfax Virginia on July 26th, 2018.

Key topics for the event include…

Local Market Overview by Industry Experts

Financing options for new construction and renovation, that Pay Commissions Upfront

High-tech solutions to connect Realtors to today’s buyers and sellers

Launching of the 3/2 Program that triples commissions and doubles marketing opportunities by bringing the real estate and construction communities together to sell more new homes and help builders secure construction projects.

Introduction of the Homebuyer Benefit Program, which gives NAIHBR Preferred Members up to $550.00 of valuable home improvement credits and services to provide to as many of their buyers and sellers as they wish – unlimited use!

This event is sure to be a full house, so interested attendees can reference this EventBrite link to register and reserve their seats:

Thank you for being a part of the National Association of Independent Home Builders and Remodelers (NAIHBR). As a member, you know the value of partnering with the building and lending communities to differentiate yourself from other brokers and better serve your clients.

At NAIHBR, our base Realtor memberships are free. There is no cost to you, to be part of our organization which includes newsletters, invitations to leadership summits, and opportunities to engage with the thousands of our membership.

Our NEW Preferred Membership Program offers the following:

• For each one of your clients, we will provide you $100 of handyman credits that you can give to each your buyers and sellers. There is no limit to how many, and this is another great way to differentiate yourself from other brokers in your market.

• For each of your clients that are moving, we offer a $350 valued moving concierge service that can handle all aspects of a stressful move. Your client gets their own US based representative to help them 24 hours a day, 7 days a week!

• For each transaction, that is a total value of $550 that can be given to your clients with no limit per year.

• In addition to the Moving/Handyman Credits, we also include access to the NAIHBR 3/2 program….allowing you to triple your commission and double your listings for open lots and teardowns. We will waive the $495.00/transaction administrative processing fee for Preferred Members.

• For each membership, we will be providing H.O.M.E DuPage and Habitat for Humanity a donation from NAIHBR (keeping with our spirit of giving back and investing in our local communities).

• You will also continue to receive access to our newsletters, invitations to leadership summits, and access to sponsored technology and product solutions.

Preferred Membership is just $49.00/year, which will be a key part of financially supporting our community based professional trade association. Please click on the following link to get details on this latest membership offering!

Many potential home buyers shy away from buying new construction homes because they have bought into the pervasive myths about the cost and process. But building a new home is less expensive and less stress-inducing than you might think. Here is the truth about common new construction myths.

“It’s too expensive”

The idea that new homes are more expensive than existing homes is easily the most common myth about new construction. New homes get this reputation because they are typically larger than existing homes. Your builder can design a home that fits your budget. Plus, most new homes are much more energy efficient so you will save on your energy bills in the long run. You also don’t have to worry about the unexpected expense of repairing a leaky roof or decrepit plumbing.

“You Can’t Build in Winter”

Yes, winter construction is a thing. No, building materials won’t get destroyed by snow; they’re treated to withstand the elements. Yes, concrete treated with calcium chloride to help it cure in cold weather is just as strong as concrete poured in warm weather. All concrete must meet strict building code requirements so you shouldn’t be concerned about the quality of concrete surfaces. As long as the foundation is in place before the ground freezes, you can still complete a project in winter months.

“New Homes Lack Character and Charm”

A new home doesn’t need to look like a cookie-cutter house. Custom homes can be designed to include beautiful and unique architectural details, tall ceilings, wood-burning fireplaces or other charming features that make it yours.

“Builders Never Finish on Time and Always Go Over Budget”

While there is not much builders can do about Mother Nature, most reputable homebuilders today have processes in place to ensure that your home is built in a timely manner and under budget. Your builder should provide you with a detailed pricing sheet that lays out the costs for labor and materials. He should also communicate regular updates so you understand the process and timelines.

NAIHBR is a not-for-profit trade association brings together homebuilders, contractors, real estate professionals, lenders and suppliers to promote development of new construction and home renovations. Our members have a strong interest in building value in their local communities. For more information or to join NAIHBR contact us at 855-733-8100.

Many buyers are intimidated by the construction process because there is a concern that there are unknown costs and that these costs can easily get out of hand. Real estate professionals working in the NAIHBR program should be aware of the costs that make up a complete new home price, and be able to walk clients through the different pieces that make up the total cost. These costs fall into 3 categories - the lot cost, hard costs and soft costs.

Lot Cost

The lot cost is very straightforward, it is the cost of the property itself. It may be a vacant lot or have an existing home on it, but the property as it is being conveyed by the seller as-is, is the lot cost.

Hard Costs

Hard costs are the cost for building the home itself. It consists of the “sticks-and-bricks” and entails all the actual material and labor to build the physical home.

Soft Costs

Soft costs consist of an array of additional expenses associated with the build. Many of these costs are specific to the site itself, like the cost to demolish the current home or remove trees that are in the area of construction. Other site specific soft costs include the engineering of the new home on the site and installation of utilities to the new home, like new sewer & water service, gas service and electric service. There are also soft cost expenses that are specific to the type of home being built, and the municipality where it is being constructed. These expenses include the permits, impact fees, bonds, as well as other specific requirements for new home construction that may be required in that particular town. An example of this would be the interior sprinkler systems that a handful of municipalities now require.

There are also soft cost expenses that are specific to the type of home being built, and the municipality where it is being constructed. These expenses include the permits, impact fees, bonds, as well as other specific requirements for new home construction that may be required in that particular town. An example of this would be the interior sprinkler systems that a handful of municipalities now require.

Summary

Coming up with an accurate soft cost number in not an easy process, and typically takes several days for a builder to provide. It requires research, as well as the bids of several subcontractors to help identify these specific costs. NAIHBR provides models and pricing for the hard costs (sticks-and-bricks) and adds them to the lot cost for the property in question. Then, this price is marketed on the MLS with the disclaimer that the soft costs are not included, and an analysis of these costs can be provided by the builder when requested. A buyer or their agent can make this request through NAIHBR, and the results of this request would need to be added to the advertised MLS price for a complete home cost.

Dallas, Texas is on track to build 48,772 new homes in 2017 while Allentown, PA will build only 436. So, what causes some cities to build so aggressively while others stagnate? The size of the city plays a part, of course but according to a recent study by Trulia, job growth, income growth and home price appreciation are the three key ingredients needed to spur homebuilding.

Job Growth

Increases or decreases in job creation have the strongest impact on demand for new construction. As people move to a new city for jobs they will need housing, of course. A steady income makes them feel financially secure enough to buy a new home. According to the study, for every 1% increase in job growth, there is a 5% increase in home building permits. In Denver, for example, employment grew by 16.3% between 2010 and 2016 and homebuilding grew to 56.2% above its historical average in 2017. Had employment increased by an additional 1% to 17.3%, homebuilding would be more like 61.2% above the historical average.

Income Growth

There is also a strong correlation between income growth and increases in new construction. It makes sense that as people earn more money they can save more for a down payment and feel comfortable that they can afford upgrading to a new home. When the average income of a metropolitan area increases by 1%, you can expect the number of new construction permits to increase by 2.1%.

Home Price Appreciation

Rising home prices typically signals strong demand which incentivizes homebuilders to build more homes because they know that 1) homes will sell quickly and 2) they will earn lucrative profits. In fact, Trulia estimates that for every percentage point increase in home prices, there is a 1.2% increase in new construction. This only occurs, however, when incomes grow along with home prices. If incomes fall or stagnate while home prices rise many buyers are priced out of the market and construction permits slow.

NAIHBR is a not-for-profit trade association brings together homebuilders, contractors, real estate professionals, lenders and suppliers to promote new construction and rehabilitation. Our members have a strong interest in building value in their local communities. For more information or to join NAIHBR contact us at 855-733-8100.

As NAIHBR members, you know about the great marketing services that NAIHBR can provide you and your sellers, but did you know NAIHBR can help you with your BUYER clients as well? Lately, many of our Realtor members have been sending their new home buying clients to us first, before starting the process of finding a lot or a builder. Here are some of the reasons why so many of our members are registering their clients with NAIHBR:

1. NAIHBR agents have access to exclusive properties not found on the MLS. Provide your clients the best selection of properties and bring value other agents cannot.

2. Your clients deserve a choice! NAIHBR will provide them several builders to select from, providing them real options for their new home build. They can choose the builder that is right for them and have a choice regarding everything from the style of the home to the price.

3. You work hard for your commissions, protect them. NAIHBR members who have their clients registered are ensured of receiving their real estate commissions, because NAIHBR builder members agree to work with the real estate community. No more wondering if a builder will try to bypass you or renegotiate your commissions.

4. Get paid now, not when the build is complete in 12 months! With NAIHBR’s special arrangement with the area’s best new construction lenders, all real estate commissions are paid up front, before the build even starts! It is new construction agency, done right.

5. New construction, and all of the variables and decisions associated with it, can be complicated. Having a NAIHBR expert that has been through the process many times before makes it much easier. Leverage NAIHBR’s extensive experience to help guide your clients through the process and make it go smoothly for both them, and yourself.

6. Additional buyer leads are nice, especially when they are looking for a new home and lot package. At NAIHBR, we are introduced to new construction homebuyers all the time. When they are looking for a quality agent, we go to the list of NAIHBR buyer agents who have registered their clients with us in the past. These are the agents committed with working with us, so we reward them with the home buyers that are brought to NAIHBR who are unrepresented.

NAIHBR is here it help you and your clients make the best of their new homebuilding experience. As NAIHBR Association members, we are here for you.

Whether you are contemplating renovating your current home versus buying a teardown or trying to decide what to do with a fixer-upper, the renovating vs demolishing question is rarely clear cut. The cost of one over the other varies from case to case. Here are a few factors that you should take into account to determine when to renovate and when to demolish.

When to Renovate

Preserving Vintage Details

If your home has historical attributes or original details that you want to keep, it may be wise to renovate. Vintage features like solid-core doors, arched doorways or marble windowsills are hard to come by today and often can’t be replaced by new construction.

Historic District Restrictions

If you live in a town or neighborhood that is designated as a historic district you may not be allowed to demolish and may be forced to renovate. Many older communities have restrictions in place to preserve historical buildings and protect the character of the town. In some places, you will need to get special permission from the local historic preservation commission to demolish and rebuild. Those can often take much longer to obtain than renovation permits and aren’t worth the trouble.

Considerable Cost Savings

If the scope of the renovation is limited enough that it is considerably more cost effective, renovating is probably your best option. Keep in mind that renovation costs are almost always higher than you anticipate due to unexpected issues like electrical or plumbing problems, mold or structural defects. You should leave some extra room in your budget for unforeseen expenses.

When to Demolish

Major Structural Issues

If the home has major structural issues it is almost always smarter to demolish the home and completely start over. Things like crumbling foundations, mold, pest infestations, or cracks in the walls are typically more expensive to repair. Water damage from a flooded basement or a leaking roof also is a major issue that is often not worth fixing.

Cost and Potential Appreciation

If the investment in new construction increases the value of the home enough to outweigh the demolition costs, then demolition is most likely your best bet. Demolition typically costs about $8,000 to $15,000 depending on the location and the size of the property. Generally, it is worth it to tear down the home if the new house can be valued two to three times as much as the original home. The price of the newly built home largely depends on the location and the current prices in that market. So it is important to know the sales prices for comparable homes in the neighborhood and set your budget within those parameters.

NAIHBR is a not-for-profit trade association brings together homebuilders, contractors, real estate professionals, lenders and suppliers to promote development of new construction and home renovations. Our members have a strong interest in building value in their local communities. For more information or to join NAIHBR contact us at 855-733-8100.

On January 25th, NAIHBR held its first of two Leadership Summits in the Chicagoland. The afternoon session included an overview of the housing market by Chairman Paul Imura, as well as an introduction to the NAIHBR program by Executive Director Jim Pesavento. NAIHBR’s newest Platinum Sponsor, Home123, was also on hand to introduce attendees to the latest technology that can simplify the request process and marketing of proposed new construction homes through the NAIHBR program. “Our proposed new construction program needed a technology piece that can speed delivery and provide a marketing tool to the real estate community regardless of MLS listing policies and an individual agents marketing strategy. Home123 brought that solution, and it has taken the NAIHBR program to the next level” stated Jim Pesavento. Other key presenters included Allan Weiss, who provided his unique insight into predictive home property valuations and addressed some surprising myths about the current CMA process currently used by most agents.

Feedback from the event was overwhelmingly positive, and comments from attendees can be found at:https://www.facebook.com/search/top/?q=naihbr. The next and final Winter Leadership Summit in Chicagoland will be Wednesday, February 7th from 1-4pm. The address is: